Does Rural Industrial Integration Depend on the "Internal Force" or "External Force" Generated by Digital Inclusive Finance?

Quanwang Zhang
Business School, Hohai University, Nanjing 211100, Jiangsu, China

Abstract:

Digital inclusive finance plays a key role in advancing rural industrial integration, yet its inter-regional impact remains unclear. This study, using a Spatial Durbin Model, examined the effects of digital inclusive finance on rural industrial integration in 40 Jiangsu counties from 2014-2020. The results show that digital inclusive finance boosts local integration but has diminishing spatial spillover effects with increasing distance. It has a greater impact in less developed and larger farmland areas. Notably, the depth of digital inclusive finance significantly promotes integration by improving insurance, stimulating investment, and facilitating integration of the three rural industries. Strategies are proposed to strengthen digital inclusive finance and promote high-quality rural industrial integration.